Personal Auto Rate Filing Instructions
 

1.      The filing shall be submitted in a legal size, vertical file folder with 2-1/2 inch prongs on each side. The company name shall be noted on the tab.

2.      All documents shall be affixed to the prongs. The documents shall be printed on one side only. The filing can have both portrait (8-1/2 x 11), or landscape (11 by 8-1/2), but all the portrait pages and all the landscape pages must all face one direction. The documents should be in the following order:

Right side.

A. Property & Casualty Transmittal Document (instructions to complete the form)

Following the Property & Casualty Transmittal Document should be the complete rate request which must be consistent with accepted actuarial concepts and principles.

B. Cover letter and/or filing memorandum which summarizes the filing.

C. Index of all exhibits and an explanation of their purpose.

D. Balance of filing. See Nevada Bulletin 06-008 for additional requirements.

Left Side.

A. Rate Filing Data Summary Worksheets (formerly forms NV PC1, NV PC3, NV PC4 and NV PC5).

B. Rate Disruption Analysis. Give the number of insureds receiving rate increases and decreases in 5% increments (e.g. 20 insureds will receive a 0%-5% increase, 30 insureds will receive a 10%-20% increase). Include the dollar amount of the largest increase and the characteristics of the insured who would receive that increase.

C. Profitability Report. The report should cover the preceding 3 to 5 years in a manner specified by the Division's Property and Casualty Actuary. The report must state the valuation date of losses and define the experience period as ending month, date and year. Example here.

D. Investment Income Report. The report needs to translate investment income on policyholder funds into a percentage of earned premium with separate derivations for liability coverages and physical damage coverages. Policyholder funds are defined as the unearned premium reserve and the loss reserve.

E. Credit Scoring Statement. A brief explanation of your use of credit scores or insurance scores. In the case of insurance score, explain what items besides credit are included in the score. If possible define how the various terms are weighted to determine an insurance score. Include a statement on the number of rating tiers and the approximate rating difference from one tier to the next. If any score is considered unacceptable and will result in an initial refusal or nonrenewal, please explain.

F. Chargeable Accidents Statement. Attach a copy of the current chargeable accident rule filed pursuant to NAC 687B.850. Include a statement to justify the dollar amount threshold for chargeable accident.

G. Stacking/Non-Stacking Statement. State whether UM-UIM and med pay limits are stacked or non-stacked. If the limits are non-stacked, supply the date when the rates and forms introducing non-stacking were first filed. Also, verify whether any stacked claims have been paid between the initial filing date mentioned above and the date of the current filing.

H. Discounts.  Companies need to list all discounts and a reference to the manual page describing the discount. Example:

Passive restraint is rule number 7 found on page 23 and gives a 10% discount for vehicles equipped with automatic seatbelts.

I. Coverage Limitations. A list of coverage limitations by time limit and by intercoverage offset. Examples: 1. Medical payments expenses are for services actually rendered within 1 year from the date of accident. 2. Non duplication of benefits under medical payments and UM-UIM coverages.

J. A statement on the use of Alternative Dispute Resolution (ADR) programs, such as, mediation and arbitration, including:

1. Identification and page location of applicable ADR policy language; and

2. Confirmation that claims personnel are instructed to follow NRS 38.250, NRS 690B.017, and other applicable laws.

K. A copy of your current NEVADA EVIDENCE OF MOTOR VEHICLE LIABILITY INSURANCE card.

L. UM/UIM and Med Pay Selection/Rejection Form. A copy of the form(s) used to offer uninsured/underinsured motorists and medical payments coverage.

M. Premium Increase Explanation. Notice sent to insureds pursuant to NAC 690B.240 explaining the manner in which the rating plan provides for an increase in premium based on incidents or claims.

N. Other Exhibits. Exhibits should include, but are not limited too, actuarial models utilized; models of credibility; development of trend factors, relativities, loss development triangles, loss development factors, permissible loss ratios, indications, etc.

If you have any questions or concerns in regards to the rate filing instructions, please call the Division's Property and Casualty Section at (775) 687-4270.

NOTE: These instructions represent the minimum requirements by the Division for a rate filing. Many companies currently use more details in several of the required exhibits and the Division would like this to continue. The Division urges companies that are not sure about a particular form or exhibit to call for more explicit instructions.